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B. Riley Securities Reports on Recent Developments and Financial Results

B. Riley Securities Holdings, Inc. (commonly referred to as BRS) has recently released a detailed business update along with financial highlights from the first full quarter following its carve-out from B. Riley Financial, Inc., which took place in March 2025. The summer of 2025 has been particularly transformative for the firm, as management expresses enthusiasm for the increasing client activity and strong revenue performance.

Management Insights on Business Performance

Jimmy Baker, the Co-CEO and Head of Capital Markets, remarked on the busy summer months and highlighted the solid performance for BRS. The firm experienced notable changes in its operational activities, especially as most market indices reached new peaks, leading to heightened client engagement. This surge in activity translated into measurable improvements in both Institutional Brokerage commissions and Investment Banking revenues.

During this quarter, B. Riley Securities displayed versatility by executing diverse financing needs aligned with client priorities, particularly in pioneering areas like cryptocurrency treasury implementation and the acceleration of artificial intelligence adoption. Baker noted that the firm assisted clients in raising over $8 billion to bolster AI-driven investments, a theme that continued to underpin activity through the second quarter of the year.

Contributing to their evolving strategy, BRS has successfully expanded its capabilities in convertible transactions, allowing for various flexible financing options backed by its expanding balance sheet. This growth trajectory has continued into the third quarter of 2025, illustrating a positive shift in momentum.

Andy Moore, the Chairman and Co-CEO, underlined the firm’s strategic enhancements. Through key personnel additions, including seven senior strategic hires, BRS has fortified its leadership in critical practice areas such as Real Estate, Healthcare, Digital Assets, and FinTech. This diversification of expertise reinforces the firm's commitment to deliver exceptional value to its middle market clients, particularly during varied market conditions. Moore emphasized the significance of their research-led franchise, which attracted hundreds of participating companies and institutional investors during their 25th Annual Investor Conference in May.

Financial Highlights of Q2 2025

B. Riley Securities has reported preliminary unaudited financial outcomes for the quarter ending June 30, 2025. Highlights include:

• - Total Revenue: $60.9 million
• - Adjusted Net Revenue: $51.5 million
• - GAAP Net Income: $12.5 million
• - Adjusted Net Income: $8.6 million

Management believes that focusing on adjusted metrics, particularly adjusted net revenue and adjusted net income, provides a clearer understanding of the operating performance and financial health of the company. Factors such as transaction volume and market conditions could lead to fluctuations in revenue and net income on a periodic basis.

The financial data displayed a strong net income stability with adequate earnings being utilized to foster growth. Additionally, the company maintains a debt-free balance sheet, reflecting a strong cash and securities total of approximately $94.5 million as of June 30, 2025.

Strategic Moves and Governance Enhancements

BRS is dedicated to continuous growth and improvement in its governance structure. As part of this ongoing commitment, the Board of Directors is now comprised of five leading members including Andy Moore as Chairman and several other seasoned professionals. This diversified governance structure aims to ensure robust oversight and strategic direction for the firm.

In light of the positive quarterly performance, the Board has also sanctioned the payment of a common stock dividend, totaling approximately $0.22 per common share, representing an aggregate payout of about $4.1 million. While this is not indicative of a recurring dividend program, the firm intends to evaluate future capital returns to shareholders based on available resources and growth prospects.

Conclusion

B. Riley Securities continues to demonstrate resilience and adaptability in the competitive financial landscape, particularly following its carve-out from B. Riley Financial. The company's focus on enhancing client value, expanding service offerings, and positioning itself strategically for future growth illustrates a clear commitment to its stakeholders. BRS looks forward to building upon this momentum through continued strategic initiatives and concerted efforts to meet emerging market needs.